Kempower (KEMPOWR) Q1 2025 earnings summary

Executive summary

• Order intake grew 32% year-over-year to EUR 59.4 million, with North America achieving a record quarter with order intake up over 300%, driven by both private and commercial vehicle segments and new customer acquisitions.

• Revenue growth was modest at 2% year-over-year to EUR 43.5 million (4% excluding FX), impacted by a low starting order backlog.

• Operative EBIT loss narrowed to EUR -7.3 million from EUR -10.8 million year-over-year, reflecting cost savings and improved collections.

• The company remains optimistic about market recovery in H2 2025, supported by growing EV registrations and DC charging installations in Europe and North America.

• Eleven new customers were acquired in Q1, with significant collaborations in the US, France, Germany, and Australia.

Financial highlights

• Gross profit for Q1 2025 was EUR 21.5 million, with a gross margin of 49.5% (49.8% in Q1 2024).

• Operative EBIT improved to EUR -7.3 million (-16.8% margin) from EUR -10.8 million (-25.4% margin) year-over-year.

• Net loss for the period was EUR 6.2 million, an improvement from EUR 8.8 million loss in Q1 2024.

• Operating cash flow was negative EUR 7.5 million, improved by cost savings but offset by higher receivables.

• Inventory reduced by over EUR 5 million for the second consecutive quarter, now at the lowest level since Q4 2023.

Outlook and guidance

• Revenue for 2025 is expected to grow 10–30% (2024 revenue: EUR 223.7 million), with significant improvement in operative EBIT.

• Financial targets remain unchanged: EUR 750 million revenue and 10–15% EBIT margin for 2026–2028.

• Market demand anticipated to remain weak in H1 2025 due to industry excess inventories, with recovery expected in H2.

• No dividends planned in the short term.

• DC charging installation CAGR estimated at ~30% by 2030; continued selective investment in growth initiatives.